Methanex boosts ammonia and RNG profile with $2bn OCI Global methanol deal | Ammonia-fertilisers

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Methanex Corporation has bought OCI Global’s methanol business for $2.05bn and bolstered its ammonia and renewable natural gas (RNG) profiles in the process.

The transaction includes OCI’s interest in two methanol facilities in Beaumont, Texas, one of which also produces up to 340,000 tonnes of ammonia.

As part of the transaction, Methanex also acquires OCI HyFuels, which produces low-carbon methanol and sells volumes with trading and distribution capabilities for renewable natural gas (RNG).

Rich Sumner, President and CEO of Methanex, said the deal will strengthen its global production base.

He said, “The Beaumont plants benefit from access to North America’s abundant and favourably priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20%.”

“From an operating perspective, we have a shared culture of safety … and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing.”

As part of the transaction, Methanex expects to achieve approximately $30m of annual cost synergies from lower logistics costs and lower selling, general and administrative expenses.

OCI’s ammonia production, while modest compared with its methanol production, provides Methanex with a low-risk entry into a new commodity in an adjacent and complementary segment to methanol with similar feedstock-based advantages.

In addition to industrial and agricultural uses, ammonia has low-carbon alternative fuel capabilities for power generation and as a marine fuel, and enables Methanex to diversify its revenues.

Headquartered in Vancouver, Methanex currently operates production sites in Canada, Chile, Egypt, New Zealand, Trinidad and Tobago and the US.

The purchase price will consist of $1.15bn in cash, the issuance of 9.9 million common shares of Methanex valued at $450 million (based on a $45 per share price) and assumption of $450m in debt and leases.

Last month, OCI Global completed the sale of its US greenfield nitrogen fertiliser facility, Iowa Fertiliser Company, to Koch AG & Energy Solutions.

It has also entered into a binding equity purchase agreement for the $2.35bn sale of its 1.1 million metric tonnes clean ammonia project under construction in Beaumont to Woodside Energy Group.

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Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66e0102c86f4437d926abe15d68865c4&url=https%3A%2F%2Fwww.gasworld.com%2Fstory%2Fmethanex-boosts-ammonia-and-rng-profile-with-2bn-oci-global-methanol-deal%2F2143954.article%2F&c=15446761919777597679&mkt=en-us Author : Publish date : 2024-09-08 23:46:00 Copyright for syndicated content belongs to the linked Source .

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Methanex boosts ammonia and RNG profile with $2bn OCI Global methanol deal | Ammonia-fertilisers

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